The health insurer says it is attracting growing numbers of younger consumers and more are opting to buy their insurance online.

nib holdings limited said its New Zealand operations contributed $3.5 million or 7.5% to group pre-tax underwriting profit of A$42.7 million for the six months ended December 31.

Chief executive Rob Hennin said the firm was experiencing strong sales in response to its marketing campaign and new products.

It has been pushing “everyday” health insurance to younger consumers, with cheap policies paying out for things such as GP visits and physio. The campaigns have been fronted by league convert Benji Marshall.

“Our new product range, which was designed to meet the needs of New Zealanders, is already resulting in strong consumer interest and sales. We are confident our investment to grow New Zealand private health insurance participation and with that our market share, will be a driver of future and sustainable earnings growth,” Hennin said.

He said the business was growing its policyholder base after six years of decline. When nib took over TOWER’s health insurance business in November 2012, it was losing an annual 4% of customers, he said.

“While it’s still very early days, we are seeing an influx of younger policyholders sign up, with almost 60% of our direct to consumer sales being to people under the age of 40.”

Customers were responding to the push towards buying online, he said.

“And of all our direct to consumer sales, 50% are joining online through our website. To put that in perspective, six months ago that was zero, with very little health insurance in New Zealand sold online,” Hennin said.

In its group results statement to the ASX, nib said consolidated net profit after tax increased to AU$39.6 million in the latest half year from AU$36.3 million in 1H13. Earnings per share gained 8.4% to 9.0 cents with return on equity steady at 21.9%.